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Problem 6-6B Record transactions using a perpetual system, prepare a partial income statement, and adjust for the lower of cost and net realizable value(LO6-2, 6-3, 6-4, 6-5, 6-6)

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At the beginning of November, Yoshi Inc.s inventory consists of 64 units with a cost per unit of $96. The following transactions occur during the month of November.

November		2		Purchase 80 units of inventory on account from Toad Inc. for $100 per unit, terms 1/10, n/30.
November		3		Pay cash for freight charges related to the November 2 purchase, $320.
November		9		Return 16 defective units from the November 2 purchase and receive credit.
November		11		Pay Toad Inc. in full.
November		16		Sell 100 units of inventory to customers on account, $12,600. [Hint: The cost of units sold from the November 2 purchase includes $100 unit cost plus $5 per unit for freight less $1 per unit for the purchase discount, or $104 per unit.]
November		20		Receive full payment from customers related to the sale on November 16.
November		21		Purchase 56 units of inventory from Toad Inc. for $106 per unit, terms 3/10, n/30.
November		24		Sell 70 units of inventory to customers for cash, $7,700. (Note: For calculating the cost of inventory sold, ignore the possible purchase discount on November 20.)

2. Suppose by the end of November that the remaining inventory is estimated to have a net realizable value per unit of $82, record any necessary adjustment for the lower of cost and net realizable value. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

November 30 Costs of Goods Sold ???

Inventory ???

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